SEHK:425

Stock Analysis Report

Executive Summary

Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People’s Republic of China, the United States, Japan, Thailand, Germany, Mexico, and internationally.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Minth Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

425

2.9%

HK Auto Components

3.1%

HK Market


1 Year Return

-2.2%

425

-14.4%

HK Auto Components

0.5%

HK Market

Return vs Industry: 425 exceeded the Hong Kong Auto Components industry which returned -14.4% over the past year.

Return vs Market: 425 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

425IndustryMarket
7 Day5.2%2.9%3.1%
30 Day0.6%-4.5%-1.8%
90 Day12.6%-3.7%-4.8%
1 Year0.9%-2.2%-11.5%-14.4%4.1%0.5%
3 Year8.3%0.4%-15.0%-21.3%15.8%4.2%
5 Year99.6%75.6%32.3%17.5%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Minth Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Minth Group undervalued compared to its fair value and its price relative to the market?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 425 (HK$26.45) is trading below our estimate of fair value (HK$31.58)

Significantly Undervalued: 425 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 425 is poor value based on its PE Ratio (17.4x) compared to the Auto Components industry average (11.3x).

PE vs Market: 425 is poor value based on its PE Ratio (17.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 425 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 425 is overvalued based on its PB Ratio (2x) compared to the HK Auto Components industry average (1x).


Next Steps

Future Growth

How is Minth Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 425's forecast earnings growth (15.8% per year) is above the savings rate (2%).

Earnings vs Market: 425's earnings (15.8% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 425's earnings are forecast to grow, but not significantly.

Revenue vs Market: 425's revenue (12.2% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 425's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 425's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Minth Group performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 425's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: 425's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 425 had negative earnings growth (-19.9%) over the past year, making it difficult to compare to the Auto Components industry average (4.4%).


Return on Equity

High ROE: 425's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: 425's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: 425's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Minth Group's financial position?


Financial Position Analysis

Short Term Liabilities: 425's short term assets (CN¥10.5B) exceeds its short term liabilities (CN¥7.0B)

Long Term Liabilities: 425's short term assets (10.5B) exceeds its long term liabilities (201.3M)


Debt to Equity History and Analysis

Debt Level: 425's debt to equity ratio (27.7%) is considered satisfactory

Reducing Debt: 425's debt to equity ratio has reduced from 35.5% to 27.7% over the past 5 years.

Debt Coverage: 425's debt is well covered by operating cash flow (57.5%).

Interest Coverage: 425's interest payments on its debt are well covered by EBIT (68.4x coverage).


Balance Sheet

Inventory Level: 425 has a high level of physical assets or inventory.

Debt Coverage by Assets: 425's debt is covered by short term assets (assets are 2.740880x debt).


Next Steps

Dividend

What is Minth Group's current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 425's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 425's dividend (2.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 425's dividends per share have been stable in the past 10 years.

Growing Dividend: 425's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.4%), 425's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 425's dividends in 3 years are forecast to be well covered by earnings (39.1% payout ratio).


Next Steps

Management

What is the CEO of Minth Group's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Bin Bo Chen (55yo)

0.2yrs

Tenure

0

Mr. Bin Bo Chen serves as Chief Executive Officer of Minth Group Limited since August 21, 2019. Mr. Chen joined Minth Group Limited in November 2018 as a special assistant to the Chairman. Mr. Chen had bee ...


Management Age and Tenure

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 425's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

51yo

Average Age

Experienced Board: 425's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Feng Zhao (50yo)

    VP & Executive Director

    • Tenure: 12.8yrs
    • Compensation: CN¥3.82m
  • Jong Chin (61yo)

    Founder & Chairman

    • Tenure: 2.2yrs
  • Yan Liu (54yo)

    Chief Operating Officer

    • Tenure: 1.1yrs
  • Bin Bo Chen (55yo)

    Chief Executive Officer

    • Tenure: 0.2yrs
  • Lei Yi (45yo)

    Head of Investor Relations Department & Company Secretary

    • Tenure: 0yrs
  • Catherine Sung (46yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
  • Chiung Huang (48yo)

    Chief Human Resources Officer & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥5.10m
  • Chien Chin (30yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥1.17m
  • Bau Hong

    Special Assistant to Chairman

    • Tenure: 0yrs

Board Members

  • Fred Wu (71yo)

    Independent Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: CN¥473.00k
  • Feng Zhao (50yo)

    VP & Executive Director

    • Tenure: 12.8yrs
    • Compensation: CN¥3.82m
  • Jong Chin (61yo)

    Founder & Chairman

    • Tenure: 2.2yrs
  • Jim Wang (64yo)

    Independent Non-Executive Director

    • Tenure: 14yrs
    • Compensation: CN¥473.00k
  • Vivian Yu (51yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥502.00k
  • Chiung Huang (48yo)

    Chief Human Resources Officer & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥5.10m
  • Chien Chin (30yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥1.17m

Company Information

Minth Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minth Group Limited
  • Ticker: 425
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$30.796b
  • Shares outstanding: 1.15b
  • Website: https://www.minthgroup.com

Number of Employees


Location

  • Minth Group Limited
  • No. 8 Dagang No. 6 Road
  • Ningbo Economic and Technological Development Zone
  • Ningbo
  • Zhejiang Province
  • 315800
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
425SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2005
MNTH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2005
M3IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005
425SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005
425SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005

Biography

Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People’s Republic of China, the United Sta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:44
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.